STAND. COM. REP. NO. 570

Honolulu, Hawaii

RE: S.B. No. 1074

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Water and Land and Agriculture and Environment, to which was referred S.B. No. 1074 entitled:

"A BILL FOR AN ACT RELATING TO ENVIRONMENTAL IMPACT STATEMENTS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Allow a previously authorized or permitted activity or operation to continue operation while the appropriate agency determines whether the activity or operation is subject to or exempt from the environmental review process; and

(2) Allow an operator of a previously authorized or permitted activity or operation to renew the appropriate permits while under the environmental review process.

Your Committees received testimony in support of this measure from the Department of Land and Natural Resources; Department of Agriculture; Sailing Shipps LTD; Captain Andy's Sailing, Inc.; Holo Holo Charters, Inc.; Activities and Attractions Association of Hawaii; The Yard; Calypso Charters; Maui Hotel and Lodging Association; Shangri-La Sailing Charters; Sailing Maui Inc.; Fair Wind Cruises; Kona Sunrise Charters; Jack's Diving Locker; Explore Kauai Scuba, LLC; Absolute Charters, Inc.; Sea Paradise Scuba Inc.; Kaʻanapali Beach Resort Association; Maui Chamber of Commerce; Teralani Sailing Adventures; Kaanapali Kai Charters; and numerous individuals.

Your Committees received testimony in opposition to this measure from Earthjustice; Sierra Club of Hawaiʻi; NWHI Hui; For the Fishes; League of Women Voters of Hawaii; Free Access Coalition; Big Island Reef Keepers Hui; Green Party of Hawaiʻi; Kupuna for the Moopuna; Sierra Club, Maui Group; Hawaii's Thousand Friends; and numerous individuals.

Your Committees received comments on this measure from the Office of Planning and Sustainable Development and three individuals.

Your Committees find that the State's environmental review process is intended to scrutinize new projects with potential environmental impacts. However, due to recent court decisions, long-permitted activities, including long-standing commercial operations, which the State did not intend to be subject to environmental review, may be compelled to cease operations despite decades-long compliance with regulatory requirements. Accordingly, this measure clarifies that the environmental review process is intended to evaluate the environmental impact of new projects rather than disrupt ongoing, well-regulated activities.

Your Committees have amended this measure by:

(1) Clarifying that an activity or operation previously permitted, authorized, or undertaken by a commercial entity may continue while the appropriate approving agency determines whether the activity or operation is subject to or exempt from the environmental review process;

(2) Specifying that an environmental assessment or environmental impact statement be submitted to the appropriate approving agency;

(3) Clarifying that if an approving agency determines that an activity or operation previously permitted, authorized, or undertaken by a commercial entity shall be subject to the environmental review process, a person with oversight of the activity or operation may renew the appropriate permits while under review; and

(4) Inserting an effective date of January 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Water and Land and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1074, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1074, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Water and Land and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ LORRAINE R. INOUYE, Chair